Testifying before Congress, Bill Gates warned that the United States risked …

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In testimony before the House Committee on Science and Technology on Wednesday, Bill Gates warned that the US was at risk of losing its position of technological leadership. He urged the committee to take steps to improve the education system, increase funding for basic science research, promote private-sector research and development, and allow high-tech companies to hire more skilled foreign workers.

Gates's speech came as the committee was marking the 50th anniversary of the committee's creation, which occurred in the wake of the Sputnik launch. Gates argued that the country "stands at a crossroads" because other countries could overtake the US in high tech innovation. While Gates's comments on education and research got a warm reception, his immigration proposals have sparked heated debate.

Education and research

Education reform was a major component of Gates's speech. He emphasized that the shortage of skilled workers had become so severe that it no longer made sense to look at the issue as a choice between training more Americans and importing more foreign workers. Both steps were necessary to preserve American competitiveness, he said

To increase the number of highly-skilled Americans available to work, Gates advocated a variety of changes to American high schools and colleges. He described a number of initiatives spearheaded by his foundation. Working with several nonprofit organizations, the Gates Foundation has funded programs that collect better data on student performance, improve high school graduation requirements, and recruit and retain the most effective teachers. He also highlighted cases in which the Gates Foundation has directly supported the creation of new math- and science-focused schools in Texas, Ohio, and North Carolina.

Gates contended that despite the excellence of America's institutions of higher education, the supply of students graduating with science and engineering degrees has not kept up with demand. Gates touted his own investment of $1.7 billion in college scholarships, urging Congress to follow his lead by expanding the NSF Graduate Fellowship Program. Gates also discussed Microsoft's efforts to help adults get training in IT-related fields and then find employers looking for workers with those skills.

Finally, Gates emphasized the importance of basic research, and urged Congress to support basic research in several ways. He asked Congress to increase funding for basic scientific research, and to renew and make permanent the research and development tax credit, which allows private companies to write off research-related expenses.

Immigration

In probably the most controversial portion of his testimony, Gates said that the shortage of trained scientists and engineers had grown so severe that it required a dramatic increase in the number of highly-skilled immigrants permitted to enter the country. He charged that the current limit of 65,000 H-1B visas per year "bears no relation to the U.S. economy's demand for skilled professionals," and noted that all of the visas for fiscal year 2008 were snapped up on the first day they were available. As he has donebefore, Gates asked for a dramatic expansion of the H-1B cap.

Disputing claims that skilled immigrants would cost American jobs, Gates argued that Microsoft hires four Americans for supporting roles for every high-skilled H-1B visa holder it hires. He also cited a study by a Virginia-based group that found a similar pattern held in other American high-tech companies.

Gates singled out the timing of the H-1B process for particular criticism. Visas for the coming year become available each April, and immigrants are permitted to begin work in October. Because a college degree is required before a worker can apply for an H-1B visa, foreign students who graduate from an American university in May are forced to wait until October of the following year to begin work at an American company. Not surprisingly, many highly skilled workers choose to take jobs outside of the US rather than wait for 18 months for the opportunity to take a job in the US.

Finally, Gates urged changes that would dramatically increase the number of skilled workers who could achieve permanent residency status in the US. In addition to the H-1B visa increase, he advocated an easier process for highly skilled immigrant workers to become permanent residents, and the elimination of country-based quotas for the issuance of green cards.

He drew criticism from Rep. Dana Rohrabacher (R-CA), who argued that companies could be hiring more American programmers instead. But Gates countered that it's better to have the world's smartest workers developing new technologies here in the US than to work overseas where the benefits of new technologies may come first to overseas firms.

It remains to be seen whether Gates will get the increase he has requested. Proposals to increase skilled immigration have been debatedbefore, but the limit of 65,000 H-1B visas has not changed in recent years.